Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/64066
Authors: 
Tam Bang Vu
Gangnes, Byron
Noy, Ilan
Year of Publication: 
2007
Series/Report no.: 
Working Papers, Santa Cruz Center for International Economics 07-17
Abstract: 
We estimate the impact of FDI on growth using sectoral data for FDI inflows to China and Vietnam. Previous empirical studies, using either cross-country growth regressions or firm-level micro-econometric analysis, fail to reach a consensus. Our paper is the first to use sectoral FDI inflow data to evaluate the sector-specific impact of FDI on growth. Our results show that, for the two developing-transition economies we examine, FDI has a statistically-significant positive effect on economic growth operating directly and through its interaction with labor. Intriguingly, we find the effects seem to be very different across economic sectors, with almost all the beneficial impact limited to industrial sector. Other sectors appear to gain very little growth benefit from sectorspecific FDI.
Subjects: 
foreign direct investment
growth
China
Vietnam
JEL: 
F21
F23
Document Type: 
Working Paper

Files in This Item:
File
Size
1.1 MB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.